JPMorgan Partners With Digital Asset for Blockchain Trial

JPMorgan has teamed up with Digital Asset on a trial blockchain initiative that aims to make the trading process more efficient and cost effective.

AccessTimeIconFeb 1, 2016 at 2:01 p.m. UTC
Updated Sep 11, 2021 at 12:06 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

JPMorgan Chase has teamed up with Digital Asset Holdings on a trial blockchain initiative that aims to make the trading process more efficient and cost effective.

As reported in the FT, several uses of the technology are to be examined, including addressing liquidity mismatches in loan funds.

These funds give investors quick access to money, although the underlying assets often take far longer to sell due to a complex manual process that must deal with multiple parties.

"To sell a loan is a very cumbersome, time-consuming process; settlement can take weeks," Daniel Pinto, CEO at JPMorgan's corporate and investment bank, told the FT. Using the blockchain makes sense, since it’s easier and faster, and produces fewer errors, he said.

New York-based Digital Asset seeks to use private or permissioned blockchain technology to streamline syndicated loans, US Treasury repo, foreign exchange, securities settlement, and derivatives.

Led by Blythe Masters, JPMorgan's former head of commodities, the firm recently raised at least $50m from 13 major financial institutions, including Citi, CME Ventures and Santander InnoVentures.

Masters told the FT that speeding up settlement would lead to "reduced capital requirements, lower operational costs and an improved client experience".

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.